Uber: shares to begin trading today
(CercleFinance.com) - US ride-hailing giant Uber will begin trading in New York today, based on an initial public offering of 45 dollars per share, at the lower end of the expected range.
At this price, the San Francisco-based app company is valued at about 80 billion dollars.
This comes as a disappointment, as a couple of months ago analysts said Uber could be worth 100 billion dollars.
For the record, Uber's offering had been initially priced at between 44 dollars and 50 dollars per share.
However, some investors think Uber's cautious view could prove clever in a difficult market environment.
"We view Uber's conservative pricing as a smart and prudent strategy coming out of the box as it clearly learned from its "little brother" Lyft, and the experience it has gone through over the past month," Wedbush Securities said.
Since its IPO in late March, Lyft has seen almost 24% wiped off its market cap.
While it maintains a "neutral" rating on Lyft, Wedbush has an "outperform" rating on Uber, saying that the company is paving a similar path to what Amazon did to transform retail.
According to the broker, Uber has a slew of opportunities ahead of it in ridesharing, logistics, food delivery, and healthcare (e.g. hospitals and insurance providers) "that make it a unique investment opportunity."
Copyright (c) 2019 CercleFinance.com. All rights reserved.
At this price, the San Francisco-based app company is valued at about 80 billion dollars.
This comes as a disappointment, as a couple of months ago analysts said Uber could be worth 100 billion dollars.
For the record, Uber's offering had been initially priced at between 44 dollars and 50 dollars per share.
However, some investors think Uber's cautious view could prove clever in a difficult market environment.
"We view Uber's conservative pricing as a smart and prudent strategy coming out of the box as it clearly learned from its "little brother" Lyft, and the experience it has gone through over the past month," Wedbush Securities said.
Since its IPO in late March, Lyft has seen almost 24% wiped off its market cap.
While it maintains a "neutral" rating on Lyft, Wedbush has an "outperform" rating on Uber, saying that the company is paving a similar path to what Amazon did to transform retail.
According to the broker, Uber has a slew of opportunities ahead of it in ridesharing, logistics, food delivery, and healthcare (e.g. hospitals and insurance providers) "that make it a unique investment opportunity."
Copyright (c) 2019 CercleFinance.com. All rights reserved.